Does conventional wisdom make economic sense? In many cases, it doesn't. This blog will question the economic efficiency and market viability of popular "solutions" to today's problems. Copyright 2011.

Thursday, March 19, 2009

The Unconstitutional Congress

Bills of attainder, ex-post-facto laws, and laws impairing the obligation of contracts, are contrary to the first principles of the social compact, and to every principle of sound legislation. James Madison, Federalist 44.

The US Congress has written and is debating legislation, today 19 March 2009, to "claw back" the bonuses that AIG awarded to certain employees in the amount of $165 million. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

Dodd, D-Conn., told FOX News that Treasury officials forced him to make the change.

"As many know, the administration was, among others, not happy with the language. They wanted some modifications to it," he said. "They came to us, our staff, and asked for changes, and the changes at the time did not seem that obnoxious or onerous."

The legislation is clearly unconstitutional, as it specifically targets AIG who lawfully paid bonuses, that were approved by Congress. Congress approved the bonuses as part of the last $30 billion in aid that AIG received. In short, it is a Bill of Attainder. According to techlawjournal.com a Bill of Attainder is:

A legislative act that singles out an individual or group for punishment without a trial.

The Constitution of the United States, Article I, Section 9, paragraph 3 provides that: "No Bill of Attainder or ex post facto Law will be passed."

As I wrote in my previous post, "Bonus Indignation" Congress is trying to make political hay and create cover, by using AIG as a scapegoat. This is all a big distraction from the disastrous spending they have written and President Teleprompter has signed.